- AUD/USD preserves its bullish momentum at the start of the week.
- Three-month copper on the LME reached a new all-time high on Monday.
- Investors largely ignored mixed macroeconomic data releases from Australia.
The AUD/USD gained more than 100 pips last week and preserved its bullish momentum on its way to a fresh 11-week high of 0.7890 on Monday. As of writing, the pair was up 0.52% on the day at 0.7882.
AUD capitalizes on surging copper prices
Earlier in the day, the data from Australia showed that Retail Sales in March increased by 1.3%, compared to analysts’ estimate of 1.4%. On a positive note, the National Australia Bank’s Business Confidence Index improved to 26 in April from 15 in March.
Despite the mixed data releases, rising copper prices allowed the AUD to continue to outperform its rivals. The benchmark three-month copper price on the London Metal Exchange (LME) reached a record high of $10,747.50/tonne on Monday.
On the other hand, the lack of interest in the greenback at the start of the week allows the AUD’s market valuation to drive AUD/USD’s action. The US Dollar Index, which fell sharply after the dismal April jobs report, is currently losing 0.12% on the day at 90.12.
The US economic docket will not be featuring any data releases on Monday and AUD/USD is likely to continue to move in accordance with copper prices.
During the Asian session on Tuesday, the HIA New Home Sales from Australia will be looked upon for fresh impetus.
Technical levels to watch for
Share
